And He Gives You of All That You Ask Him, and If You Count Allah' Favor's You Will Not Be Able To Number Them.

Page 1 of 50
And He gives you of all that you

ask Him, and if you count Allahs
favors
You will not be able to number
them.
Nadeem Meraj Submitted To: MAM Tabinda Kiran

Page 2 of 50
EXECUTIVE SUMMARY
1. Project: Milky bites ice cream Factory is

manufacturing plan proposed to set up
Ferozpur Road near Masjid Ibrahim Lahore
Our project lies in food and beverages
industry and we will produce 12 different
products of Ice cream. We will produce
Khulfa 2 liter pack khulfa 1 liter pack.
,Khulfa liter pack, Khulfa Cup Mango 2
liter pack, Mango Mango 1 liter pack,
Mango lite pack, Mango cup, Vanila
stick, Chocbar stick, Orange Lolly,
Pineapple lolly.As our project name suggest
our all product will be made of three main
ingredient Milk, Butter and Suger.
2. Location: - The proposed project will be located in
Lahore on Ferozpur Road near Ibrahim
Masjid. The edge of the location is that it is
situated in the industrial area. The proposed
project site enjoys the benefits of easy
availability of communication system, free
from poisoned effluents and it is in the main
city area of Lahore.
3. Sponsors:- The project is sponsored by four business
personnels they are highly qualified and
have proper knowledge of business
management in industrial fields, named
Nadeem Meraj of 22 year old form
Bahawalnagar and his qualification is BBA
(Hons) Finance, Shagufta Ramzan of 22
year old from Chak Madrassa and her
qualification is BBA (Hons) Finance, Affifa

Page 3 of 50
Dastgir of 22 year old from Haroon Abad

and her qualification is BBA (Hons)
Finance, and Tahir Munir of 22 year old
from Bahawalnagar his qualification is
BBA (Hons) Finance that are providing
finance for this proposed project. All the
members are equally contributing and are
equal partners and the management and
overall control of factory will be managed
by them.
4. Market & Plant Capacity: - Our proposed project site is located in
Lahore so we firstly target market of our
project is PUNJAB province of Pakistan.
We are going to serve in the different cities
of Punjab mainly Lahore, Faisalabad,
Gujranwala, Okara etc and then we will
move toward other cities of Pakistan
inshalla. Our product demand is highly exist
in market especially in summer season. The
100% capacity of plant is 30912000 liters
annually. At initial stage the plant will
operate at 80% capacity and 85% for next
two subsequent years and will be dependent
on demand level for next coming years.
5. Material & Inputs: - The basic raw materials that are required for
producing Ice-Cream and Milk, Butter, and
Sugar that we will take from Lahore and
Bhai Pheru. Other inputs are solid milk,
flavors, alomond pista, choclate, Mango
pulp etc.
6. Project Engineering: - Local and Imported both Machinery are
used in our project. The locally purchased
machinery will be Heat exchanger,

Page 4 of 50
Homogenizer, colling pipes and chiller. The

imported machinery will be GMF (Cup
filler) Technoice (Continuous Freezer)
Sedam, Gram equipment and 3M-Matic.
7. Man Power: -
Sr.No Admin Staff Skilled Labor Semi Skilled Labor
1 17 14 13
8. Implementation Schedule: - The total time period for construction of our

project is 11 months which will start from
December 2010 and will end on November
2011.We will start operations of our project
from December, 2011. The slack time of
our project can be 3 months in case of any
delay.

Page 5 of 50
9. Cost of Project: -
(Rs. In 000)
SR #. DESCRIPTION TOTAL COST
340351
1 Fixed Cost
Net Initial Working Capital

50628
2
390979
3 Total Cost
10. Financial Plan: -

Rs. In 000
Local Currency
Sr #. Description Ratio Total
Loan
1 Debt 60 234587 234587
2 Equity 40 156392 156392
11. Operating Results: -

(Rs. In 000)
Description 2012 2013 2014
Sales 1381500 1540541 1545096
Cost of Sale 785418 866978 875700
Gross Profit 596082 673563 669396
Operating Expenses 31506 35074 35592
Operating Profit 564576 638489 633804
Tax 0 0 0
Net Profit 500374 572263 569752

Page 6 of 50
12. Financial Position of the Company: -

Rs. In 000
Total current Assets

585985 1122144 1626853
Total Fixed Assets

331703 323055 314407
Total assets
917688 1445199 1941260
Total liabilities 260922 241192 200344
Total Owner equity

656766 1204006 1740916
Total Liabilities and

917688 1445199 1941260
Equity
13. Financial Indicators: -
Cash Break even 13.01%
Commercial Break even 24.15%
Weighted Average Cost of Capital 12.64%
IFRR 154.44%
14. Terms and Conditions: - Rate of interest on NBP loan from the
date of disbursement is 16%, securities
that will collateral for this loan will be
our machinery and in case of loss level
land will also be kept as collateral.
Technoice machine will be pledged with

the National Bank of Pakistan as
Page 7 of 50
security.
For providing loan the Sponsors or we

should have to do.
Acquire goods and valid title of land

Incorporate after the approval of NBP.
Dividend would not be declared up to 5
years.
Final contract with material, machinery,
suppliers and civil work need to be
disclosed to the Loan Sanctioning Bank
The loan will be paid necessarily in 10
equal annual installments. The bank will
charge penalty on delay of installment or
interest amount.
For further financial assistance approval
from National Bank of Pakistan is
essential.

Page 8 of 50
INTRODUCTION
There are many firms operating in food and beverages industry and developing many
food products. We choose food and beverages industry to impose project and we made
Ice-Cream factory named Milky Bites Ice-Cream factory at Faruz Pur Road near Masjid
Ibrahim Lahore. We select this site because many establishing firms are operating here
and this site is best for availability of raw materials, labor, near to market utilities,
availability of communication system and it is free from poisoned effluents. By selecting
this site due to these properties of site we will purchases a land of 500 marlas because we
take a survey of companies that are working in this sector. So this land will be enough for
our project. After approving map of project, construction and then of installation of
machinery, building on site will start and completed in 11 months. After that our projects
operation will started. We will made 12 products named as Khulfa 2 liter pack khulfa 1
liter pack. ,Khulfa liter pack, Khulfa Cup Mango 2 liter pack, Mango Mango 1 liter
pack, Mango lite pack, Mango cup, Vanila stick, Chocbar stick, Orange Lolly,
Pineapple lolly
There will be three main ingredients of our products Milk, Butter and suger. Firstly we
will supply our products in Lahore, Okara, Fasilabad, Gujranwala, Sheikpura, Baseer Pur
and with the passage of time we will increase our target area.
We will finance our project through 40% equity and 60% loan.
MANAGEMENT
The overall management and control of the firm will be actively managed by its active
partners who will actively participate in management decisions and control the affairs of
the firm.
Partners Name Designation
1. Nadeem Meraj Managing Director
2. Affifa Dastghir Managing Director
3. Shagufta Ramzan Managing Director
4. Tahir Munir Managing Director

Page 9 of 50
The partners will contribute equally in the equity of the project and will equally
participate in the profit and loss of the firm's business.
SPONSORS
The sponsors of the project are professionally qualified and have valuable and extensive
experience of business management in industrial fields. They have got good trading
contacts and market reputation in the industry. Moreover, they are professionally
qualified in the field of business Management from the Islamia University of Bahawalpur
under BBA Program. The sponsors experience would assist the firm in its smooth and
profitable operations.
The sponsors are financially sound and capable to contribute their part of equity in the
proposed project.
The Sponsors detail is as under:-
1. Name : Mr. Nadeem Meraj

Age : 22 years
Address : Mohallah Islam Nagar BWN.
Qualification : BBA (Finance)
2. Name : Miss. Affifa Dastghir

Age : 22 Years
Address : Tehsil Haroonabad District Bahawalnagar
3. Name : Miss.Shagufta Ramzan

Age : 22 Years
Address : Chak Madrasa District Bahawalnagar.
4. Name : Mr. Tahir Munir

Age : 22 Years
Adress : Fasil Colony Bahawalnagar

Page 10 of 50
MARKET AND DEMAND ANALYSIS
Introduction
In Pakistan there are lots of ice cream manufacturing companies working. Most well
known products of industry are kulfa, choc bars, vanilla flavors, strawberry tutti-frutti
that make large portion of sales of industry. Major raw materials are milk, butter and
sugar. e.g. 11% solid milk, 10% butter and 15% sugar.
Historically Walls is the oldest and largest company which started its working firstly in
Pakistan. Then it had a number of followers like yummy, Hecco, Rocco and in new firms
are Omore and gourmet that are now providing valuable products in noticeable volumes
in market and competing with market giants. Most of the units are working with latest
technology machinery like yummy is totally using latest technology in the whole industry
that is automated plant.
But the firms which are operating locally are not using automated plants they are using
local machineries. So when talk about whole ice cream industry the market share is
shared by both large and small firms as well because a larger portion of our population is
not brand conscious.
Present Capacity:
At present there are 3 giant companies Walls having back of gigantic parent organization
unilever, Yummy and the new born Omore the subsidiary of a big name Engro Pakistan
ltd. Other major companies of the industry are Hecco, Pearl, Panda, Rocco and gourmet.
These all are mainly located in Punjab. Most of the units are equipped with advance
technologies and are continuously striving to get most advance and latest technology.
According to an estimate totally 80130000 liter ice cream is delivered by these major
companies in the market.
Following are the ice cream units which are operating at their different levels of
percentage like Walls is operating at 85% and other units, their locations and current
capacities are as following:

Page 11 of 50
CURRENT
NAME OF FIRM/COMPANY LOCATION
CAPACITY
Walls Lahore 21000000
Yummy Lahore 16800000
Omore Sahiwal 16500000
Hecco Lahore 6300000
Gourmet Lahore 12600000
Pearl Lahore 2100000
Rocco Lahore 4200000
Panda Lahore 630000
Demand Forecast:
We are forecasting our demand of ice cream on the basis of expected growth in our target
population. The consumption of ice cream increases as population increases that will
definitely increase overall demand.
Yearly increase in population and future demand is given below.
Expected Annual
Year Population Growth consumption per Total Demand
chances person(liter)
2010-11 172144947 1.95 1 172144947
2011-12 174985338 1.65 1.25 218731672
2012-13 177872596 1.65 1.5 266808894
2013-14 180807493 1.65 1.5 271211239
2014-15 183790816 1.65 1.5 275686224
2015-16 186823364 1.65 1.5 280235046

Page 12 of 50
Gap between Demand and Supply:
Here we try to find out the gap that exists between supply and demand of ice cream.
We will find it by taking total production and total demand of one year. When we subtract
total production from total demand the gap comes. This gap shows the potential for new
entrants to enter the market or not. Yearly increase in gap is shown in the table below:
Year Total Demand Supply Gap

2010-11 172144947 80130000 92014947
2011-12 218731672 81452145 137279527
2012-13 266808894 82796105 184012788
2013-14 271211239 84162240 187048998
2014-15 275686224 85550916 190135307
2015-16 280235046 86962506 193272539

Page 13 of 50
Price of Products:-
Table Showing the Prices of Products:

Sr No. products Prices (Rs.)
1 Kulfa (2 liter) 250
2 Kulfa (1 liter) 130
3 Kulfa ( liter) 70
4 Kulfa Crown cup 20
5 Mango(2 liter) 250
6 Mango (1 liter) 130
7 Mango ( liter) 70
8 Mango Cup 20
9 Vanilla bar 7
10 Choc Bar 12
11 Orange Lolly 5
12 pineapple Lolly 5

Page 14 of 50
TECHNICAL ANALYSIS
MANUFACTURING PROCESS: -
It is step by step process and it includes following steps.
Pasteurization:-
At this step milk is heated at 85 C in till milk boils properly and become pure
from germs.
Homogenization:-
At this step all milk is homogenized mean milk , its cream and butter and suger is
broken into small molecules and mix in all milk. In this Homogenizer mixing is done at
2000 pressure.
Cooling:-
At this step all milk is cooled and it passes through cooling pipes and when it
reaches in next in chiller flavor according to product added in this chiller. The
temperature of these cooling pipes is 4C.
AGING:-
In this chiller all the materials stay for 4 to 6 hours and stay here until it thick and
thin.
FREEZING:-
At this step all the processed material comes in continuous freezer and freeze.
FILLING:-
After freezing of material it come in GMF machine it start filling into cups or liter
peals and packed.
COLD ROOM:-
After filling of material packing then all finished products go to cold room where
the temperature is - 25C.
MANUFACTURING PROCESS
Page 15 of 50
PASTEURIZATION HOMOGENIZATION COOLING AGING FREEZING
FILLING
COLD ROOM
CHOICE TECHNOLOGY:-
We have chosen our technology on the basis of the machinery that is using in its sector
firms.
MATERIAL INPUT AVAILABILITY:-
Our raw material lies in 3rd type of raw material which is from livestock. We get
milk and butter from it which is main ingredients and basis inputs for our products.
LOCATION AND SITE SELECTION:-
Following factors taken into account while selecting the location for project.
Availability of Raw Material:-

We select this location because here raw material will be easily available because
it is main area of Lahore and raw material can easily come here from other areas of
Lahore and from its surrounding area.
Availability of Labor:-
Adjacent with the area is rural areas that provide that will provide cheaper and
hardworking manpower for production.

Page 16 of 50
Transportation Cost:-
The proposed location is Farooz Pur Road near Masjid Ibrahim Lahore. The
project will be there where transportation can be easily possible and cost of transportation
means for delivery of products and coming of raw material to factory will be less costly.
Utilities:-
Utilities are easily available there because as we already explained there are so
many firms operating in this area so electricity, water and communication medias are
easily available.
Labor Situations:-
Labor situations are positive and favorable for our project. We need 27 semi
skilled and 17 for labor and admin staff are requires for admin staff we checked the labor
is productive and hardworking and there is no any unionization labor exist.
Govt. Policies:-
The project that we are going to impose follows the Govt. policies and we will
work by residing within the Govt. policies for private limited firms.
Climate Condition:-
The site that we have selected for our proposed project climate are favorable here
because ice cream is mainly a summer season operating firm and for reserving it from hot
climate we will always put it into cold stores.
Living Condition:-
The site of our project is suitable for living conditions also because here many
firms are operating already and living facility is easily available.
Environmental pollution:-
Our proposed project site is not harmful for environment it will create sound
pollution but not more than enough so it is situated at industry area where the residential
area is not so much near to it.
Machinery and Plant:-

We will purchase our machinery not from only one supplier because our few
machinery will be locally and remaining we will import from Italy.

Page 17 of 50
Annexure-I
MILKY BITES ICE CREAM FACTORY (PROPOSED) FAROOZ PUR ROAD
LAHORE
ESTIMATED COST OF LAND
RS in (000)
Sr. No. Description Area In Marlas Unit Cost Total Cost
1 Purchase of Land 500 350 175000
2 site preparation 60
3 Registration fees 50
4 Stamp duty 5
5 district council fees 20
6 Transfer charges 100
Total Cost of Land 175235

Page 18 of 50
Annexure-II
LAHORE
ESTIMATED COST OF CIVIL WORK
(RS in 000)
Area
Sr. Type of Unit of
Description Covered Unit Cost Total Cost
No. Building Construction
(Marlas)
1 Office Building RCC 170 Sft 119.83 20371
Production
2 RCC 170 Sft 119.83 20371
Building
Store for Raw

3 RCC 8 Sft 119.83 959
material
Store for Finished

4 RCC 120 Sft 119.83 14380
goods
5 Cafeteria RCC 5 Sft 100 500
Brick
6 Boundary walls 19.64 Sft 57.26 1125
work
Security Brick
7 1 Sft 93.15 93.15
Room/Hut work
Total Cost of
57798
Civil Work

Page 19 of 50
Annexure-III
LAHORE
ESTIMATED COST OF MACHINERY (LOCAL)
(RS in 000)
Sr. No. Description Quantity Unit Cost Total Cost
1 Heat exchanger 1 150 150
2 Homogenizer 1 150 150
3 Cooling pipes 1 100 100
3 Chiller 1 170 170
Total Cost of Local Machinery 570

Page 20 of 50
Annexure-III B
LAHORE
ESTIMATED COST OF MACHINERY (IMPORTED)
(Rs In 000)
Unit Exchange
Sr.No Description Currency Quantity Total Cost
Cost Rate
GMF (cup filler, Role
1 374770 Euro 1 106.732 40000
20)
2 Techno ice 140539 Euro 1 106.732 15000
3 Sedum 1874 Euro 1 106.732 200
4 Gram equipment 468 Euro 1 106.732 50
5 3M-Matic 2342 Euro 1 106.732 250
Total Cost of Imported

55500
Machinery

Page 21 of 50
Annexure-IV
LAHORE
ESTIMATED COST OF PROJECT
Sr. No. Description Total Cost
1 Land 175235
2 Building 57798
3 Machinery Local 570
4 Machinery Imported 55500
5 Inland Charges 20
6 Eraction and Installation Charges 200
7 Contingencies 5000
8 Furniture & Fixture 5000
9 Vehicles 5 No. 12500
10 Preproduction Expenses 1000
11 Interest During Construction 27528
Total Fixed Cost 340351
Initial Working Capital 50628
Total Cost of Project 390979
Annexure-V
Page 22 of 50

LAHORE
INITIAL WORKING CAPITAL (Rs in 000)
Current Assets Amounts
Inventories
Raw Material (30 Days) 47025
Finished Goods 40922
Store & Spares 200
Total Cost of Inventory 88147
Advances & Deposits 300
Accounts Receivable(.2% of sales) 27630
Cash 661
Total Current Assets 116738
Possible Current Liabilities
Less: Bank Borrowing 75% of Inventories 66110
Net Initial Working Capital Requirement 50628

Page 23 of 50
Annexure-VI
LAHORE
ESTIMATED INCOME STATEMENT
(Rs in 000)
Year ending October 31 2012 2013 2014
Sales 1381500 1540541 1545096
COST OF SALES
Raw Material 572140 607900 607900
Labor 37195 40034 42872
Manufacturing Overhead 209106 212846 216961
Depreciation 8315 8315 8315
Excise Duty 0 0 0
Total Cost of Manufacturing 826756 869095 876048
Less: Inventory adjustments 41338 2117 348
Cost of sales 785418 866978 875700
Gross Profit 596082 673563 669396
OPERATING EXPENSIS
General & Administrative Expenses 3876 4264 4690
Selling Expenses 27630 30811 30902
Total Operating Expenses 31506 35074 35592

Page 24 of 50
Operating Profit 564576 638489 633804
OTHER EXPENSES
Financial Charges on Loan 37534 35774 33731
Bank Borrowings 0 0 0
Amortization of Preproduction
333 333 334
Expenses
Total Other Expenses 37867 36107 34065
Profit before tax and workers fund 526709 602383 599739
Workers Fund 26335 30119 29987
Profit / loss before Tax 500374 572263 569752
Tax Provision 0 0 0
Net Profit 500374 572263 569752
Ratios: (%)
Gross Profit / Sales 43% 56% |57%
Operating Profit / Sales 41% 41% 41%
Pre-tax Profits / Sales 36% 37% 37%
Net Profit / Sales 36% 37% 37%
Net Profit / Equity 320% 366% 364%

Page 25 of 50
Annexure-VI-A
LAHORE
ASSUMPTION UNDERLYING THE EARNINGS FORECAST
The proposed ice cream unit would be equipped with 5 products lines which are capable of
producing different levels of production. GIF and Techno ice can produce 600 liters per hour, Sedum
can produce 300 liters per hour, GMF produce 6000 cups per hour, and Rollo 20 can produce 600
pieces per hour. Following is the detailed specification of products.
Products Specification
a
Kulfa 2 Liter
)
Milk 600 gm
Butters 180 gm
Solid Milk 200gm
Suger 200gm
Flavour 2 ml
Almond 150 gm
Pista 25 gm
b) Kulfa 1 Liter
Milk 300gm
Butters 90gm
Solid Milk 100gm
Suger 100gm
Flavour 1ml
Almond 25gm
Pista 12gm
c) Kulfa 1/2 Liter
Milk 150gm
Butters 45gm
Solid Milk 50gm
Suger 50gm

Page 26 of 50
Flavour 0.5ml
Almond 12gm
Pista 08gm
d) Kulfa Cup 1 liter

Milk 300gm
Butters 90gm
Solid Milk 100gm
Suger 100gm
Flavour 1ml
Almond 25gm
Pista 12gm
e) Mango 2 liter
Milk 600gm
Butters 90gm
Solid Milk 100gm
Suger 200gm
Flavour 2ml
Mango pulp 150gm

f) Mango 1 liter
Milk 300gm
Butters 45gm
Solid Milk 50gm
Suger 100gm
Flavour 1ml
Mango pulp 75gm
g) Mango 1/2 Liter

Milk 150gm
Butters 22gm

Page 27 of 50
Solid Milk 25gm
Suger 50gm
Flavour 1/2ml
Mango pulp 36gm
I Liter
h) Mango Cups
(12 Cups)
Milk 300gm
Butters 45gm
Solid Milk 50gm
Suger 100gm
Flavour 1ml
Mango pulp 75gm
I Liter
I) vanila Stick
(12 Sticks)
Milk 300gm
Crme 50gm
Suger 100gm
Cremey powder 10gm
Flavour 1ml
I Liter
J) Choc Bar
(12 Sticks)
Milk 300gm
Crme 50gm
Suger 100gm
Cremey powder 10gm
Flavour 1ml
Choclate 2000gm
I Liter
K) Ice Lolly Orange
(20 Sticks)
sugar 200gm
colour 1 1/2 spoon
100gm
tatary
Galucose 100gm

Page 28 of 50
Orange Flavour 2ml

I Liter
L) Pineapple Ice Lolly
(20 Sticks)
sugar 200gm
colour 1 1/2 spoon
tatary 100gm
Galucose 100gm
Pineaple Flavour 2ml

Page 29 of 50
Annual Production
Annual Production of Products Annual production (In Litter)
Annual production of (a) 504

Annual production of (b) 1,008
Annual production of (c) 2,016
Annual production of (d) 10,080
Annual production of (e) 504
Annual production of (f) 1,008
Annual production of (g) 2,016
Annual production of (h) 10,080
Annual production of (i) 840
Annual production of (j) 840
Annual production of (k) 1,008
Annual production of (l) 1,008
Total Production 30,912
1- The above capacity is based on 365 working days per annum at 100% capacity and
project would start operation 12,2011.
2- Operation efficiency of project assumed that 80% in first year of the operation and
85% in 2nd year.
3- Year end inventory is assumed that 5% of production of that particular year.
4- We assumed to sell 100% of our production in local market selling prices assumed
in accordance with the prevailing rates in the market.
Based on these assumptions following are the year vice detailed of production sales
and sale revenue of a proposed project.
( In Liter)
a Year ending 30 April 2012 2013 2014
Production of Kulfa 2 Liter 403200 428400 428400
add: opening inventory 0 20160 21400
Total Available for sale 403200 448560 449800
less: ending inventory (20160) (21400) (21400)
383040 427160 428400

Quantity Sold
Local Sale 100% 383040 427160 428400
(In Liter)
b Year ending 30 April 2012 2013 2014

Page 30 of 50
Production of Kulfa 1 Liter 806400 856800 856800
766100 854260 856800

Sold
c Year ending 30 April 2012 2013 2014
Production of Kulfa 1/2 Liter 1612800 1713600 1713600

Sold 1532160 1708560 1713600
d Year ending 30 April 2012 2013 2014
Production of Kulfa cups

8064000 8568000 8568000
( 1 Liter 12 Cups)
Sold 7660800 8542800 8568000
e Year ending 30 April 2012 2013 2014
Production of Mango 2 Liter 403200 428400 428400

Sold 383040 427160 428400
(In Liter)
f Year ending 30 April 2012 2013 2014
Production of Mango 1 Liter 806400 856800 856800
Sold 766100 854260 856800
g Year ending 30 April 2012 2013 2014
Page 31 of 50
Production of Mango 1/2

1612800 1713600 1713600
Liter
Sold 1532160 1708560 1713600
h Year ending 30 April 2012 2013 2014
Production of Mango cups
8064000 8568000 8568000
(1 Liter 12 Cups)
Sold 7660800 8542800 8568000
i Year ending 30 April 2012 2013 2014
Production of Vanila stick 672000 714000 714000
Sold 638400 711900 714000
[(In Liter)
j Year ending 30 April 2012 2013 2014
Production of Choc Bar 1
672000 714000 714000
Liter (12 stick)
Sold 638400 711900 714000
K Year ending 30 April 2012 2013 2014
Production of Orange ice-lolly
8064000 8568000 8568000
1 Liter (20 stick)
Sold 7660800 8542800 8568000
Production of Pineapple ice-
L 8064000 8568000 8568000
lolly 1 Liter (20 stick)
Sold 7660800 8542800 8568000
(RS in 000))
Sales Revenue
Local Sale 2012 2013 2014
1 Kulfa 2 liter @250 95760 106779 107100
2 Kulfa 1 liter @130 99593 111053 111384
3 Kulfa 1/2 liter @70 107251 119599 119952
4 Crown cup @20 153216 170856 171360
5 Mango cup @20 153216 170856 171360
Page 32 of 50
6 Mango cup @20 153216 170856 171360

7 Mango cup @20 153216 170856 171360
8 Mango cup @20 153116 170856 171360
9 Ice, lolly orange @ 5 3292 3559 3570
10 Ice, lolly pineapple @ 5 3192 3559 3570
11 Vanila stick @7 153216 170856 171360
12 choc bar stick @12 153216 170856 171360
Annual Sales 1381500 1540541 1545096

Page 33 of 50
Cost of Raw Material

1- Kulfa 2 liter :173 Rs per 2 Litter
2012 2013 2014
69754 74113 74113
2- Kulfa 1 liter : 86 Rs per litter
69350 73685 73685
3- Kulfa 1/2 liter: 43 Rs per 1/2 litter
69350 73685 73685
4- Kulfa cup: 12 cup in 1 litter: 7.50 pr cup
60480 64260 64260
5- Mango 2 litter: 170 Rs per 2 litter
68544 72828 72828
6- Mango 1 litter: 85 Rs per litter
68544 72828 72828
7- Mango 1/2 litter : 43 Rs per 1/2 litter
69350 73685 73685
8- Mango Cup (I Litter 12 Cups)
56448 59976 59976
9- vanila Bar 3 Rs per unit
2016 2142 2142
10- Chocbar stick 9 Rs per unit
6048 6426 6426
11- Orange Lolly ( 1 litter 20 stick) 2 per unit
16128 17136 17136
12- Pineaple lolly (1 litter 20 stick) 2 per unit
16128 17136 17136
Total Cost of Raw Material 572140 607900 607900
Labor Cost (Rs in 000)
Category No. Salary Annual
Refgeration Incharge 1 15 180

Loader 3 6 216
Electrical Engineer 1 20 240
Production Incharge 1 25 300
Shipping Incharge 1 10 120
Labor 20 6 1440
Total 27 82 26568
Fring Benefits 40% 10627
Total Labor Cost 37195
Year vice as under
Year ending 30th April 2012 2013 2014
Total Labor Cost 37195 40034 42872
(Rs in 000)
Manufacturing Overhead Cost
a) Fixed Cost
Power: 1000 kw @ 23 276
Insurance 1/2 % of fixed asset cost 170176

Page 34 of 50
Repair and Maintenance

Machinery @ 1/2% of installation cost 100
Building @ 1% of construction cost 578
Vehicle @4% of cost 500
Oil and lubricates 50
Miscellaneous 20
Total Fixed FOH 171700
b) Variable FOH
Power: 1000 kw x0.80*8*365*16 37376
Furnace oil 30
Total Variable Cost 37406
Year ending 30th April 2012 2013 2014

Fixed Cost 171700 171700 171700
Variable Cost 37406 41147 45261
Total Cost Of Over head. 209106 212846 216961
Depreciation Cost
Plant and Machinery (Cost Rs. 56070) @ 7%
3925
Building (Cost of Rs.) @ 5% 2890
Furniture and Fixture (cost Rs.5000) @ 5%
250
Vehicles (Cost Rs 12500000) @ 10%
1250
Total Depreciation Cost 8315
Administration Salaries and General Expenses
Administration Salaries
Category No. Salary Annual
G.M 1 40 480
Deputy Manager 3 25 900
Cashier 1 7 84
Clerks 2 6 144
Drivers 5 8 480
Security Guards 3 6 216
Sweeper 2 1 29
Total 17 93 2333
Fringe benefit 40% 933
Total Admin salary cost 3266
General Expenses
Travelling and conveyance 100
Painting and stationary 90
Telephone 150
Haj 200
Medical Facility 50
Miscellaneous 20
Total General Expense 610

Page 35 of 50
Total Admin and General Expenses 3876

Selling Expenses
2 % of Sales Revenue
Year ended 30 April 2012 2013 2014
Selling expenses 27630 30811 30902

Page 36 of 50
Annexure-VII
LAHORE
ESTIMATED CASH FLOW STATEMENT
End of
Operating Years
Construction
(Rs in 000)
Year
Year ending October 31 2011 2012 2013 2014
SOURCES OF FUNDS
Operating Profit 0 564576 638489 633804
Add back: Depreciation 0 8315 8315 8315
Total Fund From Operation 0 572891 646804 642119
OTHER SOURCES
Loans 234587 0 0 0
Term Finance Certificates 0 0 0 0
Bank Borrowings 0 0 0
Paid up capital 156392 0 0 0
Total Sources of Funds 390979 572891 646804 642119
APPLICATION OF FUNDS
Investment in Fixed Assets 311823 0 0 0
Financial Charges during construction 27528 0 0 0
Pre-production Expenses 1000 0 0 0
Repayment of:
NBP Loans 0 0 48536 48536
Term Finance Certificates 0 0 0 0
Bank Borrowings 0 0
Financial Charges
Long Term Debts 0 37534 35774 33731
Bank Borrowings 0 0 0 0
PAYMENT OF
Taxes 0 0 0 0
Dividends 0 0 0 25023
Worker's Fund Payable 0 0 26335 30119
Short Term Investment 0 0 0
Increase in Current Assets (other than Cash) 47525 50184 7141 499
Total Applications of Funds 387876 87718 117786 137909
Cash Surplus 3103 485173 529018 504210
Cash at beginning of Year 0 3103 488276 1017294
Cash at end of the year 3103 488276 1017294 1521504
Debt service coverage (Times) 13 7 7

Page 37 of 50
Annexure-VIII
LAHORE
ESTIMATED BALANCE SHEET
End of
Construction Operating Years
Year
Year ending October 31 2011 2012 2013 2014
ASSETS
CURRENT ASSETS
Cash & Bank balance 3103 488276 1017294 1521504
Short term Investment 0 0 0 0
Account Receivable 0 27630 30811 30902
Inventories
Raw Material 47025 28607 30395 30395
Finished Goods 0 40922 43039 43387
Stores & Spares 200 220 242 266
Advances, Deposits & Prepayments 300 330 363 399
Total Current Assets 50628 585985 1122144 1626853
FIXED ASSETS
Fixed Assets at Cost 339351 339351 339351 339351
Less: Accumulated Depreciation 0 8315 16630 24944
Fixed Assets Net 339351 331036 322721 314407
Intangibles 1000 667 334 0
Total Fix Assets 340351 331703 323055 314407
Total Assets 390979 917688 1445199 1941260

Page 38 of 50
LIABILITIES AND EQUITY
CURRENT LIABILTIES
Bank Borrowings 0 0 0 0
Tax payable 0 0 0 0
Dividend Payable 0 0 25023 32842
Worker's Fund Payable 0 26335 30119 29987
Current Maturity of Long term Debt 0 48536 48536 48536
Loans
Total Current Liabilities 0 74872 103678 111366
LONG TERM DEBTS
Long Term Loan 234587 186051 137514 88978
Total Long Term Debt 234587 186051 137514 88978
EQUITY:
Paid-Up-Capital 156392 156392 156392 156392
Retained Earnings 0 500374 1047615 1584524
Total Equity 156392 656766 1204006 1740916
Total Liability & Equity 390979 917688 1445199 1941260
Ratios: (%)
Current Ratio 7.83:1 10.82:1 14.61:1

28.33
Debt / Equity 11.42% 5.11%
%

Page 39 of 50
Annexure-IX
LAHORE
Commercial Break-Even in the First Operating Year:
(at 85% Capacity)
Rs In
"000"
Description Variable Cost Fixed Cost Total Cost
Raw Material 572140 0 572140
Labor 37195 0 37195.2
Manufacturing Overheads 37406 171700 209106
Depreciation 0 8315 8315
Administration & General Expenses 0 3876 3876
Interest / Mark up Expenses 0 37534 37534
Amortization of Preproduction Expenses 0 333 333
Total 646769 221757 868526
Sales Value of Production 1381500
Fixed Cost
Break Even Point =
Sales variable cost
221757
= x 80.00%
1381500 - 646769
= 24.15%

Page 40 of 50
Annexure-IX-A
LAHORE
Cash Break-Even in the Third Operating Year:
(at 85% Capacity)
(Rs In "000")
Description Variable Cost Fixed Cost Total Cost
Raw Material 607900 0 607900
Labor 26568 10627 37195
Manufacturing Overheads 45261 172 45433
Administration & General Expenses 0 4690 4690
Interest / Mark up Expenses 0 33731 33731
Worker's Participation Fund 0 29987 29987
Debt Payment 0 48536 48536
Tax 0 0 0
Total 710631 127744 838375
Sales Value of Production 1545096
Break Even Point = Fixed Cost

Sales variable cost
127744
= x 85.00%
1545096 - 710631
= 13.01%

Page 41 of 50
Annexure-X
LAHORE
WEIGHTED AVERAGE COST OF FUNDS
(Rs In "000")
Interest After Tax Total

Nature of Fund Amount
Rate Rate Interest
NBP Loan 234587 16% 10.40% 24397
Paid-Up-Capital 156392 16% 16% 25023
Total 390979 49420
Weighted Average Cost of

Weight x After Tax Rate
Fund =

60% x 10.40% 6.24%
Fund (Debt) =

40% x 16% 6.40%
Fund (Equity) =
Total Weighted Average

12.64%
Cost of Fund =

Page 42 of 50
Annexure-XII
LAHORE
MILKY BITES ICE CREAM FACTORY
(Rs in "000")
Net Cash
Depreciation
Operating
Net Cash
Capital Workers Return
Profit
Years Taxes Inflow
Outlay Fund (3+4)-
(7-2)
(5+6)
0 360348 0 0 0 0 0 -360348
1 50184 564576 8315 0 0 572891 522707
2 7141 638489 8315 0 28229 618575 611434
3 499 633804 8315 0 31924 610195 609695
4 0 633804 8315 0 31690 610429 610429
5 0 633804 8315 0 31690 610429 610429
6 12500 633804 8315 0 31690 610429 597929
7 0 633804 8315 210740 31690 399689 399689
8 0 633804 8315 210740 31690 399689 399689
9 0 633804 8315 210740 31690 399689 399689
10 0 633804 8315 210740 31690 399689 399689
11 12500 637729 4390 210740 31690 399689 387189
12 0 637729 4390 212114 31886 398119 398119
13 0 637729 4390 212045 31886 398188 398188
14 0 637729 4390 212045 31886 398188 398188
15 -6051138 637729 4390 424090 63773 154256 345690

IFRR = 154.44%

Page 43 of 50
Assumption:-
Calculation Of IFRR for the project has been carried out under the following
assumptions:- The economic life of the project would be 15 years;
I. The entire capital outlay would be incurred one year prior to the commencement of
commercial operations.
II. Motor Vehicles and operating equipment would be replaced after every 5 years.
III. Salvage value at the end of the life of the project represents the recovery of working
IV. Capital, book value of building, office furniture and fixture and original value of
land.

Page 44 of 50
ECONOMY ANALYSIS
What ever the project is imposed by anyone but the thing that is considering is that how
much it is contributing to development of the economy as a whole because if you are
going to impose the project that will be not for your personal benefits only you have to
see how much beneficial for our society or for our country.
The project that we will operate is not a so much big but it will provide employment to
27 persons as labor and 17 persons for admin staff. It will not only provide employment
but also made them skilled persons. We will hire them and provide them proper training
about how to work with automated machinery and how to operate it. So through this we
will convert unskilled people to skilled people.
Whenever we see our contribution in economy we cant measure it accurately as separate
firm because seeing position in economy we will se our sector contribution to overall
economy. For increasing our contribution to overall economy firstly we will increase the
our contribution in our sector then as our contribution in sector increases then our
contribution in overall economy will also increases. So, as we will get profits through this
project it will provide employment to people and helpful for making then skilled people,
and our sector contribution increases in overall economy and our economy indicator will
lead our economy to grow.

Page 45 of 50
CONCLUSION
After making all the estimation and calculations of proposed project we conclude
that our project can work good if it is operated efficiently because we select this project
on the base of gap that exist in market in supply and demand of Ice-cream. Our target
areas are Lahore, Okara, Gujranwala etc here a portion of population is living and
eating ice-cream and for any new project starts must be on small level thats why we
select these target areas firstly and these areas are in surroundings of our site so on time
delivery can be easily possible. The products that we will offer are prepared on specific
quality standard and with latest automated machinery so products quality would
increase demand of our products. We take estimation of land, building construction,
loan sanctioning and overall cost of project on accurate measurement so according to
our efforts conclude that this project is feasible in almost all of aspects is should have to
be implemented.
After the careful analysis of this project we are come to the opinion that the project will
be INSHALLAH successful

Page 46 of 50
RECOMMENDATIONS
After analyzing financial statements this project is viable for investment so it should
be financed.
It has high liquidity due to high current ratio so it can easily serve its short term
liabilities.
Due to its profitability it can repay its loans.

Page 47 of 50
ANNEXURES
Summary of Financial Analysis

LAHORE
Ratios: (%) 2012 2013 2014
Gross Profit / Sales 43% 56% |57%
Operating Profit / Sales 41% 41% 41%
Pre-tax Profits / Sales 36% 37% 37%
Net Profit / Sales 36% 37% 37%
Net Profit / Equity 320% 366% 364%
Debt service coverage (Times) 13 7 7
Current Ratio 7.83:1 10.82:1 14.61:1
Debt / Equity 28.33% 11.42% 5.11%
Operating Condition (Rs. In 000)

Net Profit 500374 572263 569752
Financial Position of Company (Rs. In 000)
Description 2011 2012 2013 2013
Total assets 390979 917688 1445199 1941260

Page 48 of 50

LAHORE
FINANCIAL PLAN
Description LCY FCY Total Cost
Total Fixed Cost of the Project 340351 - 340351
Initial permanent working capital 50628 - 50628
Total cost of the project 390979 - 390979
Long term Debt 234587 - 234587
Equity Participation 156392 - 156392
Total Capital Required 390979 - 390979
Debt/equity Ratio
Debt-to-equity Ratio: 60:40

Page 49 of 50

LAHORE
LOAN REPAYMENT SCHEDULE
Loan Amount 234587

Interest Rate(t) 16%
Time (t) 10 Years
(RS In "000")
Sr. Installment Beginning
Interest Principal Total Ending Balance
No. Period Balance
1 2012 234587 37534 11002 48536 223585
2 2013 223585 35774 12763 48536 210822
3 2014 210822 33731 14805 48536 196017
4 2015 196017 31363 17174 48536 178843
5 2016 178843 28615 19921 48536 158922
6 2017 158922 25428 23109 48536 135813
7 2018 135813 21730 26806 48536 109007
8 2019 109007 17441 31095 48536 77912
9 2020 77912 12466 36070 48536 41842
10 2021 41842 6695 41842 48536 0

Page 50 of 50

And He Gives You of All That You Ask Him, and If You Count Allah' Favor's You Will Not Be Able To Number Them.

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Page 1 of 50

And He gives you of all that you

Nadeem Meraj Submitted To: MAM Tabinda Kiran

1. Project: Milky bites ice cream Factory is

Nadeem Meraj Submitted To: MAM Tabinda Kiran

Dastgir of 22 year old from Haroon Abad

Nadeem Meraj Submitted To: MAM Tabinda Kiran

Homogenizer, colling pipes and chiller. The

Sr.No Admin Staff Skilled Labor Semi Skilled Labor

8. Implementation Schedule: - The total time period for construction of our

Nadeem Meraj Submitted To: MAM Tabinda Kiran

SR #. DESCRIPTION TOTAL COST

Net Initial Working Capital

10. Financial Plan: -

2 Equity 40 156392 156392

11. Operating Results: -

Nadeem Meraj Submitted To: MAM Tabinda Kiran

12. Financial Position of the Company: -

Description 2012 2013 2014

Total current Assets

Total Fixed Assets

Total liabilities 260922 241192 200344

Total Owner equity

Total Liabilities and

13. Financial Indicators: -

Cash Break even 13.01%

Commercial Break even 24.15%

Weighted Average Cost of Capital 12.64%

Technoice machine will be pledged with

For providing loan the Sponsors or we

Acquire goods and valid title of land

Nadeem Meraj Submitted To: MAM Tabinda Kiran

2. Affifa Dastghir Managing Director

3. Shagufta Ramzan Managing Director

4. Tahir Munir Managing Director

1. Name : Mr. Nadeem Meraj

2. Name : Miss. Affifa Dastghir

3. Name : Miss.Shagufta Ramzan

4. Name : Mr. Tahir Munir

Nadeem Meraj Submitted To: MAM Tabinda Kiran

MARKET AND DEMAND ANALYSIS

Nadeem Meraj Submitted To: MAM Tabinda Kiran

2015-16 186823364 1.65 1.5 280235046

Nadeem Meraj Submitted To: MAM Tabinda Kiran

Gap between Demand and Supply:

Year Total Demand Supply Gap

Nadeem Meraj Submitted To: MAM Tabinda Kiran

Table Showing the Prices of Products:

Nadeem Meraj Submitted To: MAM Tabinda Kiran

PASTEURIZATION HOMOGENIZATION COOLING AGING FREEZING

Availability of Raw Material:-

Nadeem Meraj Submitted To: MAM Tabinda Kiran

Machinery and Plant:-

Nadeem Meraj Submitted To: MAM Tabinda Kiran

ESTIMATED COST OF LAND

Sr. No. Description Area In Marlas Unit Cost Total Cost

1 Purchase of Land 500 350 175000

5 district council fees 20

6 Transfer charges 100

Total Cost of Land 175235

Nadeem Meraj Submitted To: MAM Tabinda Kiran

1 Office Building RCC 170 Sft 119.83 20371

Store for Raw